REMUNERATION TO PARTNERS

( As amended upto Finance (No.2) Act, 2019 )

About

A Partnership firm is allowed to pay remuneration to its partners. Such remuneration can be paid with in an overall limit specified under Section.40(b) of Income Tax Act,1961. Any payment above this limit is disallowed. This calculator enables calculation of allowable remuneration to partners.

Net Profit/(Loss) as per Profit & Loss A/c

Add: Items debited to Profit & Loss A/c

S.No

Name of Partner

Capital amount

Amount of Interest

1

TOTAL

Remuneration to partners

Salary to partners

Bonus to partners

Commission to partners

Total remuneration allowed

Depreciation

other disallowable items

Profit before interest, depreciation & remuneration

Less: Interest on capital to partners @ 12%

Depreciation allowable as per Income Tax act,1961

Other allowable items

Book profit

(A) Maximum remuneration allowable as per Sec 40(b) of IT Act,1961

(B) Total remuneration allowed as per books of account

Remuneration inadmissible u/s.40(b)/40(ba)

Advisory:
Information relates to the law prevailing in the year of publication/ as indicated . Viewers are advised to ascertain the correct position/prevailing law before relying upon any document.

Disclaimer:
The above calculator is only to enable public to have a quick and an easy access to basic tax calculation and does not purport to give correct tax calculation in all circumstances. It is advised that for filing of returns the exact calculation may be made as per the provisions contained in the relevant Acts, Rules etc